Negative Equity: Good News Bad News
First the good news. It turns out that less people are upside down in their mortgages than was previously thought. First American Corelogic has released a report that shows a more precise view of who is underwater. Under the old way 33.8% of all home owners in America would have negative equity. Well here’s the good news under their new calculations ONLY 23% of ALL AMERICAN home owners are underwater. Wow makes my day. Only 1 in every 4 home owners is holding on with an upside down mortgage.
- Some lowlights from the study are: 10.7 million or 23% of all residential properties were upside down in their mortgages. Plus an additional 2.3 million are getting close.
- The distributions of negative mortgages are mainly in 5 states. In Nevada 65% of all homes are upside down. Then Arizona at 48%, Florida at 45% Michigan at 37% and last but hardly least California at 35%. If you were to average these numbers against all other states these five are about 40% under water and every one else is about 14%.
Now we can track these bad mortgages because a huge portion of them were made during the last part of the housing bubble from 2005 to 2008. I think of all the dreams shattered by our idiots in congress and I want to cry. Sure there are some speculators and some frauds but mostly these were Joe averages who wanted a piece of the American dream.
I ask you how can we how the politician responsible for this disaster? Well that’s simple enough we can hold they to their empty promises in the next election.
People please when you next vote, and please do vote, hold your local politician to the wall and vote ‘em out.
Jim Johnson and comments are always welcome
